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Qi Lu, a search executive who joined Microsoft from Yahoo in 2008, will lead the new Applications and Services Engineering Group. Microsoft's Ballmer said Lu, who had been leading Bing, will be responsible for apps and services in productivity, communication and search, among others.
Though Bing hasn't gained much ground on Google, Microsoft hopes that turning Bing into a platform for developers to embed search into their apps will help. Bing is also powering the new Smart Search feature in Windows 8.1, which returns Web search results along with local results when a PC user does a search query.
Two longtime Microsoft executives are getting new roles that are similar to their old ones.
Satya Nadella, a 22-year Microsoft exec who's been leading Microsoft's $19 billion Server and Tools unit, is leading the new Cloud and Enterprise Engineering Group. Nadella will lead development of data center, database and other enterprise technologies and will also be in charge of Microsoft's data center construction and operations.
Tami Reller, a 12-year vet who's been holding down the Windows CFO and CMO jobs, will lead Microsoft's new Marketing group. She'll be assisted by Mark Penn, the former political public relations guru whom Microsoft hired last July to help hone its anti-Google marketing efforts.
Kurt DelBene, a 21-year Microsoft long-timer and president of the Office division, is not part of the new structure and will be retiring, Ballmer said.